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The ACN Opportunity has been designed to help you build a successful business of your own. ACN Independent
  U.S.                                             Business Owners (IBOs) can earn money in two ways:
  Compensation
                                               	   1    Monthly residual commissions based on their personal and downline customers’ usage of ACN’s service	                2    Weekly and Monthly Bonuses 		
  Plan Overview                                	        based on customer acquisition
  Effective July 1, 2011
                                                   Get to know ACN’s Compensation Plan in detail – so you can learn how to put it to work in your business.
                                        ®




                                                   Positions & Qualifications
                                                   STARTING POSITION: Every IBO starts as a Team Trainer (TT).

                                                   Qualified Team Trainer (QTT)
                                                                                                                                                    Compensation is earned at ACN only when
                                                                     To become a qualified Team Trainer, you must have at least 5                          customers are acquired.
                                                                     Customer Points (including at least 2 Preferred Customers).
                                                                     Preferred Customers must be either different services or the
                                                                     same service from a household other than your own.                              Access your IBO Back Office for details on
                                                       5 Customer    You must be a qualified Team Trainer (QTT) in order to earn                      ACN’s monthly, promotional bonuses –
                                                          Points     bonuses.                                                                       designed to get new IBOs off to a fast start.

                                                   EARNED POSITIONS: There are 6 earned positions at ACN.
                                                   Executive Team                Executive Team               Team Coordinator             Regional Director         Regional Vice               Senior Vice
                                                   Trainer (ETT)                 Leader (ETL)                 (TC)                         (RD)                      President (RVP)             President (SVP)
                                                                    You                         You                           You                         You                         You                           You
                                                                    7 Customer                  15 Customer
                                                                    Points                      Points




                                                           QTT                     ETT    ETT         QTT       200      200      200                TC                         TC          TC          TC        RVP TC RD
                                                                                                              Customer Customer Customer
                                                                                                               Points   Points   Points




                                                                    QTT                               ETT                                    TC                        TC                           RD RVP


  Success as an ACN Independent
  Business Owner is not guaranteed,
  but rather influenced by an                                                                                                                                   TC                   TC                      TC
  individual’s specific effort. Not all                    You acquire                You acquire              200 Customer Points         1 TC in 3 separate legs   1 TC in 4 separate legs      Must have 1 TC or above
  IBOs make a profit and no one can                    7 Customer Points          15 Customer Points            in 3 separate legs               at any level              at any level          in 6 separate legs, includ-
  be guaranteed success as an ACN                              and                        and                                                                                                    ing at least 3 RD/RVP legs
  IBO. ACN’s Compensation Plan is                            1 QTT in                   1 ETT in                                                                                                   and one of those legs
  subject to change without notice at                    2 separate legs            3 separate legs                                                                                                  must be a RVP leg.
  ACN’s discretion and for any reason.                     at any level               at any level
                                                                                                                                             Minimum Monthly          Minimum Monthly               Minimum Monthly
                                                                                                                                             Downline Billings:       Downline Billings:            Downline Billings:
                                                                                                                                                 $50,000                  $75,000                       $500,000
©ACN, Inc. 2011 CompPlanOverview_RP_W_070111                                                                                                                                                                                  1
ACN Customer Point System & Commissionable Revenue
  ACN Customer
                                               The only way to earn income at ACN is through the acquisition of customers; therefore all IBOs must acquire customers in order to meet qualifications and advance
  Point System                                 through ACN’s earned positions. ACN utilizes a customer point system for each of its products and services.
                                                                                                                                                                      Preferred                   Monthly Commissionable                      Duration of Points
                                                                     Product / Service                                       Customer Points
                                                                                                                                                                   Customer Points                       Revenue*                             and Commissions
                                                Telecommunication Services
                                                	   Digital Phone Service w/Video Phone                                             2 Points                                  3                                  100%                             Life of Customer
                                        ®


                                                	   Digital Phone Service w/Phone Adapter                                           2 Points                                  3                                  100%                             Life of Customer
                                                	   Digital Phone Service Family Plan                                               1 Point                                                                      100%                             Life of Customer
                                                                                                                  2 Points (Special Promo:June 24-July 31)

                                                	   Local and Long Distance                                                         2 Points                                  3                                  100%                             Life of Customer
                                                	   Long Distance                                                                   1 Point                                                                      100%                             Life of Customer
                                                	   Mobile World                                                            U.S. & Canada = 1 Point;                                                             100%                             Life of Customer
                                                                                                                            International = 1 Point
                                                                                                                              Pay As You Go = n/a

                                                	   CLEAR WiMAX                                                                     1 Point                                                                Home – $40                                  2 years1
                                                                                                                                                                                                        Home & Mobile – $60
                                                                                                                                                                                                      Home & Two Mobile – $80
                                                	   DigitalTalk Commercial Digital Phone Service                              2-4 lines = 3 Points                            3                                  100%                             Life of Customer
                                                                                                                              5-9 lines = 4 Points                            3
                                                                                                                              10+ lines = 5 Points                            3
                                                	   Digital Talk Express – Digital Phone Service for                                3 Points                                  3                                  100%                             Life of Customer
                                                	   Home Office & Small Business
                                                	   Flash Wireless                                                             1 line = 2 Points                              3                                  100%                             Life of Customer
                                                                                                                              2-3 lines = 3 Points                            3
                                                                                                                              4-5 lines = 4 Points                            3
                                                	   Wireless – New Accounts (Individual or Air Card)                           1 line = 2 Points                              3                        One line or air card – $40                      2 years1
                                                        Verizon Wireless, T-Mobile, Sprint, Nextel                            2-3 lines = 3 Points                            3                              2 Line – $60
                                                                                                                              4-5 lines = 4 Points                            3                              3 Line – $70
                                                                                                                                                                                                             4 Line – $80
                                                                                                                                                                                                             5 Line – $90
                                                	   Wireless Extensions – any number of lines                                       1 Point                                                          Single Line Extensions – $20                      2 years1
                                                       Verizon Wireless, T-Mobile, Sprint, Nextel                                                                                                   2 Line Family Extensions – $30
                                                                                                                                                                                                   3-5 Line Family Extensions – $35
                                                	   Wireless Add-A-Line                                                       1-2 lines = 1 Point                                                      Add-A-Line – $10 per line                       2 years1
                                                       Verizon Wireless, T-Mobile, Sprint, Nextel                             3-4 lines = 2 Points

                                                Home Services
                                                	   Satellite TV – DIRECTV or DISH (Residential or Business)                        2 Points                                  3                       DIRECTV – $60; DISH – $50                        2 years1
                                                	   Satellite TV – DISH FLEX24 Plan                                                 1 Point                                                                      $19.99                                2 years1
                                                	   ADT Home Security                                                               2 Points                                  3                                   $40                                  3 years1
                                                	   Vivint – Home Security & Automation                                             2 Points                                  3                                  100%                                42 months
                                                	   Energy – Natural Gas or Electricity                                           1 Point each                                3                                  50%**                            Life of Customer
                                                	   Computer Support (Residential or Business)                                      1 Point                                                                      100%                             Life of Customer

                                                Other
  U.S.                                          	   Your Business Assistant2                                                         1 Point                                                                      None                            Life of Subscription

  Compensation                                 *Commissionable revenue is billed revenue less taxes, surcharges and an allowance for bad debt. ACN
                                               reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products,
                                                                                                                                                             1

                                                                                                                                                             2
                                                                                                                                                              Customers will no longer count toward points if they cancel prior to the term of their agreement.
                                                                                                                                                              If a Your Business Assistant subscription was used for CAB or T-CAB qualifications and is cancelled within the
                                               negotiated pricing or certain services.
  Plan Overview
                                                                                                                                                             first 60 days, the bonus will be retracted.
                                               **Energy rates subject to fluctuation. ACN reserves the right to cap commissionable billing at $1/therm and   DSL service is not commissionable. Customers who cancel within 90 days will be immediately purged
                                               13.5¢/kilowatt hour. IBOs will receive commissions on 50% of the customers’ actual energy usage, excluding    regardless of the reason for cancelling and may result in reversal of all bonuses.
                                               taxes and surcharges..
©ACN, Inc. 2011 CompPlanOverview_RP_W_070111                                                                                                                                                                                                                               2
ACN Compensation
   ACN
                                                              1 Monthly Residual Commissions
   Commissions
                                                                     Over time, your goal is for the majority of your compensation to come from the residual income of your customers’ monthly billings. Customer acquisition is the
                                                                     fuel for your business, creating long-term lasting income. The bottom line is that you are acquiring customers and teaching other people how to do the same
   U.S. Compensation
                                                                     thing in order to build residual income for yourself.
   Plan Overview
                                                  ®



                                                            Personal Commissions
                                                            As you acquire your own, personal customers, you qualify to earn between 1% and 10% of their
                                                            monthly bills. This percentage is based on your total number of Customer Points:                                                                      DigitalTalk Commercial Personal Commissions
                                                                                                                                                                                                                       Billing        Commission          Billing         Commission
                                                                                                                                           Example:
                                                              1-29 Customer Points = 	 1%                                                  (Average $40 Monthly Bill)
                                                                                                                                                                                                                       Volume            %                Volume             %
                                                                                                                                                                                                                     $0 to $1,999         3%          $8,000 to $9,999         7%
                                                                                                                                           40 Customer Points = $40/month
                                                                                                                                                                                                                   $2,000 to $3,999       4%         $10,000 to $12,499        8%
                                                              30-39 Customer Points =	 3%                                                  	                    personal commission
                                                                                                                                                                                                                   $4,000 to $5,999       5%         $12,500 to $14,999        9%
                                                                                                                                           20 Customers (totaling 40 Customer Points) x $40 bill
                                                                                                                                           x 5% = $40/month personal commission                                    $6,000 to $7,999       6%             $15,000 +            10 %
                                                              40-49 Customer Points =	 5%                                                  50 Customer Points = $100/month                                        Commissions on large commercial accounts and customers acquired
                                                                                                                                           	                    personal commission                               by Affinity programs (such as not-for-profit organizations) may be paid
                                                                                                                                                                                                                  according to a custom commission schedule that will be determined at
                                                              50+ Customer Points = 	 10%                                                  25 Customers (totaling 50 Customer Points) x $40 bill
                                                                                                                                           x 10% = $100/month personal commission                                 the time the program/contract is completed.

                                                            When an IBO has more than 30 Customer Points, upline commissions on only that IBO’s
                                                            personal customers will be cut in half.


Overriding Residual Commissions                                                                                                                                                                           Commissionable billing for some wireless carriers, satellite
Schedule of commissions earned from customer acquisition in your organization and Personal Customer Points required:                                                                                      TV, ADT home security and CLEAR WiMAX customers is a fixed
 Commissions by Service                                                                                                                                                                                   amount. Refer to the ACN Customer Point System chart for
                                     Telecommunications                    DigitalTalk Commercial                         QUALIFICATIONS FOR EACH COMMISSION LEVEL                                        amounts.
            Levels
                                      and Home Services                         Digital Phone                                              Personal Customer Points                                       IBOs will receive a percentage of these amounts each month
           Personal                             1-10 %                                  3-10 %                                                      See box above                                         depending on where they fall in the compensation plan.
                1                                1/4 %                                   1%                                                                                                               For example, if you have 100 IBOs on your 7th level, and each
                2                                1/4 %                                  1/2 %
                                                                                                                                                            10
                                                                                                                                                                                                          has 4 single line wireless customers, you would receive $1,280 in
                3                                1/4 %                                  1/4 %                                                                                                             monthly residual commissions off those customers.
                4                                1/2 %                                  1/4 %
                                                                                                                                                            20
                                                                                                                                                                                                          For Example:
                5                                     3%                                 ------                                                                                                           100 reps x 4 single line wireless customers x $40 commissionable
                6                                     5%                                 ------                                                             40                                            revenue x 8% = $1,280
                7                                     8%                                 ------
                                                                                                                   A RD earns commissions on all customers below 7th level to                            TIP: Seventh Level Qualifications
       Open Line RD                                   1%                                1/2 %
                                                                                                                   an unlimited number of levels to the next RD’s 7th level.                             ACN IBOs can qualify to receive over-riding commissions on and
     Open Line RVP                              1 1/2 %                                   1%                                                                                                             throughout their seventh level by acquiring and maintaining 40
                                                                                                                   A RVP earns commissions on all customers below 7th level to
   1st Generation RVP                             1%                                    1/2 %                                                                                                            Personal Customer Points. Set a goal to acquire and maintain 50
                                                                                                                   an unlimited number of levels to the next RVP’s 7th level.
   2nd Generation RVP                            1/2 %                                   ------                                                                                                          Personal Customer Points as quickly as possible to maximize personal
     Open Line SVP                                    2%                                1/2 %                      A SVP earns commissions on all customers below 7th level to                           customer commissions.
   1st Generation SVP                                 1%                                 ------                    an unlimited number of levels to the next SVP’s 7th level.
Complete customers must be received by 2:00pm ET on the first Friday of the month in order for IBOs to qualify for commissions. Commissions are released on the first business day following the third
                                                                                                                                                                                                         RDs, RVPs and SVPs also receive overriding residual income beyond the
Friday of each month. Commissions are paid the third month after the close of the month the customer is billed.                                                                                          7th level as detailed in the Commissions by Service chart to the left.
©ACN, Inc. 2011 CompPlanOverview_RP_W_070111                                                                                                                                                                                                                                           3
ACN Compensation
  ACN
                                               	2    Weekly and Monthly Bonuses
  Bonuses
                                               The second way IBOs can earn compensation is through weekly Customer Acquisition Bonuses (CABs) and monthly Team Customer Acquisition Bonuses (TCABs).


                                               Customer Acquisition Bonuses – CABs
                                               Customer Acquisition Bonuses (CABs) are paid when your newly sponsored Team Trainers become qualified within 30 days of their start date. In order to count for
                                               qualifications, all new customers must show a “complete” status on the IBO’s Personal Customer List. A customer will show a “complete” status when all the necessary
                                        ®




                                               information has been received and processed by ACN.

                                               CABs will be paid 14 days following the new TT’s start date once they qualify within their first 30 days.




                                                 Team Trainer CAB: $25                                                                          A QTT must have at least 5 Customer Points
                                                 Qualified TTs can earn a $25 Customer Acquisition Bonus for every                              (including at least 2 Preferred Customers).
                                                 directly sponsored new TT that they help get qualified within the new TTs
                                                 first 30 days.
                                                                                    QTT
                                                                     $25                        QTT
                                                                           $25
                                                                                       $0                    TT
                                                     QTT                                      $25                     QTT
                                                 Only QTTs are eligible to receive the TT CAB. However, the sponsoring                     Remember:
                                                 TT does not have to be qualified on the day they sponsor the new TT, but must             Compensation is earned at ACN only when customers
                                                 be qualified by the new Team Trainers 30th day.
                                                                                                                                           are acquired.


                                                 TC and Above CABs:
                                                 Team Coordinators and above can earn CABs on all the new QTTs in their open line – and not just the QTTs they directly sponsor.

                                                 TIP: An IBO’s open line consists of all the IBOs in their organization down to the next IBO at their same earned position or higher.



                                                                                                  Customer Acquisition Bonus Schedule
                                                                                            TC                                       RVP                                        SVP
  U.S.                                                                          Open Line = $50                           Open Line = $30                             Open Line = $30
  Compensation                                                                1st generation = $20                      1st generation = $15                        1st generation = $15
  Plan Overview                                                                             RDs, RVPs and SVPs can earn TC CABs on newly qualified Team Trainers in their TC open line.

©ACN, Inc. 2011 CompPlanOverview_RP_W_070111                                                                                                                                                                      4
Open Line and                                Open Line Customer Acquisition Bonuses (CABs) are earned when IBOs                                                      Every time a new Team Trainer becomes qualified (QTT) within 30 days, ACN

  Generational                                 in your downline – who have not yet reached your same earned position – help                                            pays out a CAB. How much of that CAB you could receive depends on your
                                                                                                                                                                       earned position and the earned position held by the other IBOs between you
                                               their newly sponsored TTs become qualified within their first 30 days.
  CABs                                                                                                                                                                 and the newly qualified Team Trainer.

                                                                                                                                                                       CABs are only earned when new TTs become qualified by acquiring at least 5
                                                  For example:                                                                                                         Personal Customer Points including 2 Preferred Customers within their first 30
                                                                                                                                               Jill
                                        ®



                                                                                                                                                                       days.
                                                                                                                                                TC




                                                                                           Jill’s Open Line
                                                                                                                                  ETT          ETT        Kate $50
                                                  Jill earns a                                                                                            QTT

                                                  $50 TC open                                                                          Bob            John $50
                                                  line CAB on                                                                           ETL            QTT

                                                  Kate and
                                                                                                              Sara                     ETT          ETT
                                                  John                                                          TC


                                                                                     ETT                       ETT                     ETT                 ETT




                                               Generational CABs are bonuses that you earn when IBOs in your organization – who have reached the same earned position as you –
                                               help their newly sponsored IBOs meet their customer qualifications.

                                                                                                                                                                       Bob is promoted to




                                                                                                                                                                                                                   Jill’s Open Line
                                                                                                                                                          Jill         TC – Jill’s open line has                                                  Jill
                                                                                                               Jill’s Open Line




                                                  Jill earns a $20 TC                                                                                     TC           changed                                                                    TC

                                                  1st Generation CAB                                                                                                   Sara earns a $50 TC
                                                                                                                                                    ETT          QTT                                                                        ETT          QTT
                                                  on Steve                                                                                                             open line CAB on Joe
                                                                                                                                             Bob                                                                                      Bob         QTT
                                                                                                                                              ETL                      Bob earns a $20                                                TC
                                                                                                                                                                       TC 1st Generation CAB
                                                  Sara earns a                                                                                                         on Joe
                                                                          Jill’s 1st Gen




                                                                                                                              Sara           ETT       ETT                                                     Sara                   ETT     ETT
                                                  $50 TC open                                                                     TC                                                                            TC
                                                                                                                                                                       Jill isn’t
  U.S.
                                                                                                                                                                                          Bob’s 1st
                                                  line CAB on                                                                                                          eligible                           Joe

                                                                                                                                                                                           Gen
                                                                                                              Steve                    ETT                                                                           QTT
  Compensation                                    Steve                                                       QTT                                                      for a CAB                          QTT

  Plan Overview                                                                                                                                                        on Joe
©ACN, Inc. 2011 CompPlanOverview_RP_W_070111                                                                                                                                                                                                                   5
Team Customer
                                               Team Customer Acquisition Bonuses (TCABs)
                                               Monthly Team Acquisition Bonuses (TCABs) are paid to ETTs and above for helping new TTs in your open line get qualified within their first 30 days and vary from
  Acquisition                                  $100 to $50,000 depending on your earned position and the number of new, open line, QTTs in a calendar month.

  Bonuses                                      Executive Team Trainer (ETT) TCAB                                                                    Executive Team Leader (ETL) TCAB
                                               Anyone who is an ETT during a month of this promotion is eligible. An ETT who has at least 2 open    Anyone who is an ETL during a month of this promotion is eligible. An ETL who has at least 3 open
                                               line TTs, whose start dates are during a calendar month of this promotion,                           line TTs, whose start dates are during a calendar month of this promotion, and
                                        ®      and each of those TTs are qualified(1) within 30 days of their start date will                       each of those TTs are qualified(1) within 30 days of their start date
                                               receive a $100 BONUS!                                                                                will receive a $200 BONUS!



                                                                                Amount of                                                             Amount of
                                                                                TCAB Compensation                                                     TCAB Compensation



                                                                                   $100       $500     $1,000 $1,500 $2,500 $3,000                     $200       $750     $1,500 $2,500 $3,000 $4,000 $5,000 $6,000 $7,000
                                                                                   2 QTTs     4 QTTs    6 QTTs 9 QTTs 12 QTTs 15 QTTs                  3 QTTs     5 QTTs   10 QTTs 15 QTTs 20 QTTs 25 QTTs 30 QTTs 35 QTTs 40 QTTs
                                                             The number of new open line TTs who become qualified within their first 30 days.                    The number of new open line TTs who become qualified within their first 30 days.


                                               Team Coordinator (TC) TCAB                                                                           Regional Director (RD) TCAB
                                                Anyone who is a TC, RD, RVP or SVP during a month of this promotion is eligible.                    Anyone who is a Regional Director during a month of this promotion is eligible.
                                                A TC who has at least 5 open line TTs, whose start dates are during a                               A RD who has at least 25 open line TTs whose start dates are during a
                                                calendar month of this promotion, and each of those TTs are                                         calendar month of this promotion, and each of those TTs are qualified (1)
                                                qualified(1) within 30 days of their start date will receive a                                      within 30 days of their start date will receive a $2,000 bonus!
                                                $500 BONUS!

                                                Amount of                                                                                                                               Amount of
                                                TCAB Compensation                                                                                                                       TCAB Compensation



                                                   $500      $1,500 $3,000 $5,000 $6,500 $8,000 $10,000 $12,000 $25,000                                                                                           $2,000 $4,000 $6,000
                                                   5 QTTs    10 QTTs 15 QTTs 20 QTTs 25 QTTs 30 QTTs 40 QTTs 50 QTTs 100 QTTs                                                                                     25 QTTs 50 QTTs 100 QTTs
                                                             The number of new open line TTs who become qualified within their first 30 days.                    The number of new open line TTs who become qualified within their first 30 days.

                                                                                                                                                   1
                                                                                                                                                    TCABs will be paid 14 days following the new Team Trainer’s start date, once
                                               Regional Vice President (RVP) TCAB                                                                  they qualify within their first 30 days. Bonus payments will be calculated and
                                                Anyone who is a RVP or SVP during a month of this promotion is eligible.                           paid weekly and reconciled after the close of the applicable calendar month. In
                                                A RVP who has at least 25 open line TTs, whose start dates are during a                            order to receive TCABs, ETTs and above must maintain the minimum number of
                                                calendar month of this promotion, and each of those TTs are qualified(1)                           personal customers to be qualified as a Team Trainer.
                                                within 30 days of their start date will receive a $2,000 BONUS!



                                                        Amount of
                                                        TCAB Compensation
  U.S.
  Compensation                                                                    $2,000 $5,000 $10,000 $15,000 $25,000 $50,000

  Plan Overview                                                                   25 QTTs 50 QTTs 100 QTTs 150 QTTs 250 QTTs 500 QTTs
                                                             The number of new open line TTs who become qualified within their first 30 days.
©ACN, Inc. 2011 CompPlanOverview_RP_W_070111                                                                                                                                                                                                            6

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ACN Review - ACN Compensation Plan

  • 1. The ACN Opportunity has been designed to help you build a successful business of your own. ACN Independent U.S. Business Owners (IBOs) can earn money in two ways: Compensation 1 Monthly residual commissions based on their personal and downline customers’ usage of ACN’s service 2 Weekly and Monthly Bonuses Plan Overview based on customer acquisition Effective July 1, 2011 Get to know ACN’s Compensation Plan in detail – so you can learn how to put it to work in your business. ® Positions & Qualifications STARTING POSITION: Every IBO starts as a Team Trainer (TT). Qualified Team Trainer (QTT) Compensation is earned at ACN only when To become a qualified Team Trainer, you must have at least 5 customers are acquired. Customer Points (including at least 2 Preferred Customers). Preferred Customers must be either different services or the same service from a household other than your own. Access your IBO Back Office for details on 5 Customer You must be a qualified Team Trainer (QTT) in order to earn ACN’s monthly, promotional bonuses – Points bonuses. designed to get new IBOs off to a fast start. EARNED POSITIONS: There are 6 earned positions at ACN. Executive Team Executive Team Team Coordinator Regional Director Regional Vice Senior Vice Trainer (ETT) Leader (ETL) (TC) (RD) President (RVP) President (SVP) You You You You You You 7 Customer 15 Customer Points Points QTT ETT ETT QTT 200 200 200 TC TC TC TC RVP TC RD Customer Customer Customer Points Points Points QTT ETT TC TC RD RVP Success as an ACN Independent Business Owner is not guaranteed, but rather influenced by an TC TC TC individual’s specific effort. Not all You acquire You acquire 200 Customer Points 1 TC in 3 separate legs 1 TC in 4 separate legs Must have 1 TC or above IBOs make a profit and no one can 7 Customer Points 15 Customer Points in 3 separate legs at any level at any level in 6 separate legs, includ- be guaranteed success as an ACN and and ing at least 3 RD/RVP legs IBO. ACN’s Compensation Plan is 1 QTT in 1 ETT in and one of those legs subject to change without notice at 2 separate legs 3 separate legs must be a RVP leg. ACN’s discretion and for any reason. at any level at any level Minimum Monthly Minimum Monthly Minimum Monthly Downline Billings: Downline Billings: Downline Billings: $50,000 $75,000 $500,000 ©ACN, Inc. 2011 CompPlanOverview_RP_W_070111 1
  • 2. ACN Customer Point System & Commissionable Revenue ACN Customer The only way to earn income at ACN is through the acquisition of customers; therefore all IBOs must acquire customers in order to meet qualifications and advance Point System through ACN’s earned positions. ACN utilizes a customer point system for each of its products and services. Preferred Monthly Commissionable Duration of Points Product / Service Customer Points Customer Points Revenue* and Commissions Telecommunication Services Digital Phone Service w/Video Phone 2 Points 3 100% Life of Customer ® Digital Phone Service w/Phone Adapter 2 Points 3 100% Life of Customer Digital Phone Service Family Plan 1 Point 100% Life of Customer 2 Points (Special Promo:June 24-July 31) Local and Long Distance 2 Points 3 100% Life of Customer Long Distance 1 Point 100% Life of Customer Mobile World U.S. & Canada = 1 Point; 100% Life of Customer International = 1 Point Pay As You Go = n/a CLEAR WiMAX 1 Point Home – $40 2 years1 Home & Mobile – $60 Home & Two Mobile – $80 DigitalTalk Commercial Digital Phone Service 2-4 lines = 3 Points 3 100% Life of Customer 5-9 lines = 4 Points 3 10+ lines = 5 Points 3 Digital Talk Express – Digital Phone Service for 3 Points 3 100% Life of Customer Home Office & Small Business Flash Wireless 1 line = 2 Points 3 100% Life of Customer 2-3 lines = 3 Points 3 4-5 lines = 4 Points 3 Wireless – New Accounts (Individual or Air Card) 1 line = 2 Points 3 One line or air card – $40 2 years1 Verizon Wireless, T-Mobile, Sprint, Nextel 2-3 lines = 3 Points 3 2 Line – $60 4-5 lines = 4 Points 3 3 Line – $70 4 Line – $80 5 Line – $90 Wireless Extensions – any number of lines 1 Point Single Line Extensions – $20 2 years1 Verizon Wireless, T-Mobile, Sprint, Nextel 2 Line Family Extensions – $30 3-5 Line Family Extensions – $35 Wireless Add-A-Line 1-2 lines = 1 Point Add-A-Line – $10 per line 2 years1 Verizon Wireless, T-Mobile, Sprint, Nextel 3-4 lines = 2 Points Home Services Satellite TV – DIRECTV or DISH (Residential or Business) 2 Points 3 DIRECTV – $60; DISH – $50 2 years1 Satellite TV – DISH FLEX24 Plan 1 Point $19.99 2 years1 ADT Home Security 2 Points 3 $40 3 years1 Vivint – Home Security & Automation 2 Points 3 100% 42 months Energy – Natural Gas or Electricity 1 Point each 3 50%** Life of Customer Computer Support (Residential or Business) 1 Point 100% Life of Customer Other U.S. Your Business Assistant2 1 Point None Life of Subscription Compensation *Commissionable revenue is billed revenue less taxes, surcharges and an allowance for bad debt. ACN reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products, 1 2 Customers will no longer count toward points if they cancel prior to the term of their agreement. If a Your Business Assistant subscription was used for CAB or T-CAB qualifications and is cancelled within the negotiated pricing or certain services. Plan Overview first 60 days, the bonus will be retracted. **Energy rates subject to fluctuation. ACN reserves the right to cap commissionable billing at $1/therm and DSL service is not commissionable. Customers who cancel within 90 days will be immediately purged 13.5¢/kilowatt hour. IBOs will receive commissions on 50% of the customers’ actual energy usage, excluding regardless of the reason for cancelling and may result in reversal of all bonuses. taxes and surcharges.. ©ACN, Inc. 2011 CompPlanOverview_RP_W_070111 2
  • 3. ACN Compensation ACN 1 Monthly Residual Commissions Commissions Over time, your goal is for the majority of your compensation to come from the residual income of your customers’ monthly billings. Customer acquisition is the fuel for your business, creating long-term lasting income. The bottom line is that you are acquiring customers and teaching other people how to do the same U.S. Compensation thing in order to build residual income for yourself. Plan Overview ® Personal Commissions As you acquire your own, personal customers, you qualify to earn between 1% and 10% of their monthly bills. This percentage is based on your total number of Customer Points: DigitalTalk Commercial Personal Commissions Billing Commission Billing Commission Example: 1-29 Customer Points = 1% (Average $40 Monthly Bill) Volume % Volume % $0 to $1,999 3% $8,000 to $9,999 7% 40 Customer Points = $40/month $2,000 to $3,999 4% $10,000 to $12,499 8% 30-39 Customer Points = 3% personal commission $4,000 to $5,999 5% $12,500 to $14,999 9% 20 Customers (totaling 40 Customer Points) x $40 bill x 5% = $40/month personal commission $6,000 to $7,999 6% $15,000 + 10 % 40-49 Customer Points = 5% 50 Customer Points = $100/month Commissions on large commercial accounts and customers acquired personal commission by Affinity programs (such as not-for-profit organizations) may be paid according to a custom commission schedule that will be determined at 50+ Customer Points = 10% 25 Customers (totaling 50 Customer Points) x $40 bill x 10% = $100/month personal commission the time the program/contract is completed. When an IBO has more than 30 Customer Points, upline commissions on only that IBO’s personal customers will be cut in half. Overriding Residual Commissions Commissionable billing for some wireless carriers, satellite Schedule of commissions earned from customer acquisition in your organization and Personal Customer Points required: TV, ADT home security and CLEAR WiMAX customers is a fixed Commissions by Service amount. Refer to the ACN Customer Point System chart for Telecommunications DigitalTalk Commercial QUALIFICATIONS FOR EACH COMMISSION LEVEL amounts. Levels and Home Services Digital Phone Personal Customer Points IBOs will receive a percentage of these amounts each month Personal 1-10 % 3-10 % See box above depending on where they fall in the compensation plan. 1 1/4 % 1% For example, if you have 100 IBOs on your 7th level, and each 2 1/4 % 1/2 % 10 has 4 single line wireless customers, you would receive $1,280 in 3 1/4 % 1/4 % monthly residual commissions off those customers. 4 1/2 % 1/4 % 20 For Example: 5 3% ------ 100 reps x 4 single line wireless customers x $40 commissionable 6 5% ------ 40 revenue x 8% = $1,280 7 8% ------ A RD earns commissions on all customers below 7th level to TIP: Seventh Level Qualifications Open Line RD 1% 1/2 % an unlimited number of levels to the next RD’s 7th level. ACN IBOs can qualify to receive over-riding commissions on and Open Line RVP 1 1/2 % 1% throughout their seventh level by acquiring and maintaining 40 A RVP earns commissions on all customers below 7th level to 1st Generation RVP 1% 1/2 % Personal Customer Points. Set a goal to acquire and maintain 50 an unlimited number of levels to the next RVP’s 7th level. 2nd Generation RVP 1/2 % ------ Personal Customer Points as quickly as possible to maximize personal Open Line SVP 2% 1/2 % A SVP earns commissions on all customers below 7th level to customer commissions. 1st Generation SVP 1% ------ an unlimited number of levels to the next SVP’s 7th level. Complete customers must be received by 2:00pm ET on the first Friday of the month in order for IBOs to qualify for commissions. Commissions are released on the first business day following the third RDs, RVPs and SVPs also receive overriding residual income beyond the Friday of each month. Commissions are paid the third month after the close of the month the customer is billed. 7th level as detailed in the Commissions by Service chart to the left. ©ACN, Inc. 2011 CompPlanOverview_RP_W_070111 3
  • 4. ACN Compensation ACN 2 Weekly and Monthly Bonuses Bonuses The second way IBOs can earn compensation is through weekly Customer Acquisition Bonuses (CABs) and monthly Team Customer Acquisition Bonuses (TCABs). Customer Acquisition Bonuses – CABs Customer Acquisition Bonuses (CABs) are paid when your newly sponsored Team Trainers become qualified within 30 days of their start date. In order to count for qualifications, all new customers must show a “complete” status on the IBO’s Personal Customer List. A customer will show a “complete” status when all the necessary ® information has been received and processed by ACN. CABs will be paid 14 days following the new TT’s start date once they qualify within their first 30 days. Team Trainer CAB: $25 A QTT must have at least 5 Customer Points Qualified TTs can earn a $25 Customer Acquisition Bonus for every (including at least 2 Preferred Customers). directly sponsored new TT that they help get qualified within the new TTs first 30 days. QTT $25 QTT $25 $0 TT QTT $25 QTT Only QTTs are eligible to receive the TT CAB. However, the sponsoring Remember: TT does not have to be qualified on the day they sponsor the new TT, but must Compensation is earned at ACN only when customers be qualified by the new Team Trainers 30th day. are acquired. TC and Above CABs: Team Coordinators and above can earn CABs on all the new QTTs in their open line – and not just the QTTs they directly sponsor. TIP: An IBO’s open line consists of all the IBOs in their organization down to the next IBO at their same earned position or higher. Customer Acquisition Bonus Schedule TC RVP SVP U.S. Open Line = $50 Open Line = $30 Open Line = $30 Compensation 1st generation = $20 1st generation = $15 1st generation = $15 Plan Overview RDs, RVPs and SVPs can earn TC CABs on newly qualified Team Trainers in their TC open line. ©ACN, Inc. 2011 CompPlanOverview_RP_W_070111 4
  • 5. Open Line and Open Line Customer Acquisition Bonuses (CABs) are earned when IBOs Every time a new Team Trainer becomes qualified (QTT) within 30 days, ACN Generational in your downline – who have not yet reached your same earned position – help pays out a CAB. How much of that CAB you could receive depends on your earned position and the earned position held by the other IBOs between you their newly sponsored TTs become qualified within their first 30 days. CABs and the newly qualified Team Trainer. CABs are only earned when new TTs become qualified by acquiring at least 5 For example: Personal Customer Points including 2 Preferred Customers within their first 30 Jill ® days. TC Jill’s Open Line ETT ETT Kate $50 Jill earns a QTT $50 TC open Bob John $50 line CAB on ETL QTT Kate and Sara ETT ETT John TC ETT ETT ETT ETT Generational CABs are bonuses that you earn when IBOs in your organization – who have reached the same earned position as you – help their newly sponsored IBOs meet their customer qualifications. Bob is promoted to Jill’s Open Line Jill TC – Jill’s open line has Jill Jill’s Open Line Jill earns a $20 TC TC changed TC 1st Generation CAB Sara earns a $50 TC ETT QTT ETT QTT on Steve open line CAB on Joe Bob Bob QTT ETL Bob earns a $20 TC TC 1st Generation CAB Sara earns a on Joe Jill’s 1st Gen Sara ETT ETT Sara ETT ETT $50 TC open TC TC Jill isn’t U.S. Bob’s 1st line CAB on eligible Joe Gen Steve ETT QTT Compensation Steve QTT for a CAB QTT Plan Overview on Joe ©ACN, Inc. 2011 CompPlanOverview_RP_W_070111 5
  • 6. Team Customer Team Customer Acquisition Bonuses (TCABs) Monthly Team Acquisition Bonuses (TCABs) are paid to ETTs and above for helping new TTs in your open line get qualified within their first 30 days and vary from Acquisition $100 to $50,000 depending on your earned position and the number of new, open line, QTTs in a calendar month. Bonuses Executive Team Trainer (ETT) TCAB Executive Team Leader (ETL) TCAB Anyone who is an ETT during a month of this promotion is eligible. An ETT who has at least 2 open Anyone who is an ETL during a month of this promotion is eligible. An ETL who has at least 3 open line TTs, whose start dates are during a calendar month of this promotion, line TTs, whose start dates are during a calendar month of this promotion, and ® and each of those TTs are qualified(1) within 30 days of their start date will each of those TTs are qualified(1) within 30 days of their start date receive a $100 BONUS! will receive a $200 BONUS! Amount of Amount of TCAB Compensation TCAB Compensation $100 $500 $1,000 $1,500 $2,500 $3,000 $200 $750 $1,500 $2,500 $3,000 $4,000 $5,000 $6,000 $7,000 2 QTTs 4 QTTs 6 QTTs 9 QTTs 12 QTTs 15 QTTs 3 QTTs 5 QTTs 10 QTTs 15 QTTs 20 QTTs 25 QTTs 30 QTTs 35 QTTs 40 QTTs The number of new open line TTs who become qualified within their first 30 days. The number of new open line TTs who become qualified within their first 30 days. Team Coordinator (TC) TCAB Regional Director (RD) TCAB Anyone who is a TC, RD, RVP or SVP during a month of this promotion is eligible. Anyone who is a Regional Director during a month of this promotion is eligible. A TC who has at least 5 open line TTs, whose start dates are during a A RD who has at least 25 open line TTs whose start dates are during a calendar month of this promotion, and each of those TTs are calendar month of this promotion, and each of those TTs are qualified (1) qualified(1) within 30 days of their start date will receive a within 30 days of their start date will receive a $2,000 bonus! $500 BONUS! Amount of Amount of TCAB Compensation TCAB Compensation $500 $1,500 $3,000 $5,000 $6,500 $8,000 $10,000 $12,000 $25,000 $2,000 $4,000 $6,000 5 QTTs 10 QTTs 15 QTTs 20 QTTs 25 QTTs 30 QTTs 40 QTTs 50 QTTs 100 QTTs 25 QTTs 50 QTTs 100 QTTs The number of new open line TTs who become qualified within their first 30 days. The number of new open line TTs who become qualified within their first 30 days. 1 TCABs will be paid 14 days following the new Team Trainer’s start date, once Regional Vice President (RVP) TCAB they qualify within their first 30 days. Bonus payments will be calculated and Anyone who is a RVP or SVP during a month of this promotion is eligible. paid weekly and reconciled after the close of the applicable calendar month. In A RVP who has at least 25 open line TTs, whose start dates are during a order to receive TCABs, ETTs and above must maintain the minimum number of calendar month of this promotion, and each of those TTs are qualified(1) personal customers to be qualified as a Team Trainer. within 30 days of their start date will receive a $2,000 BONUS! Amount of TCAB Compensation U.S. Compensation $2,000 $5,000 $10,000 $15,000 $25,000 $50,000 Plan Overview 25 QTTs 50 QTTs 100 QTTs 150 QTTs 250 QTTs 500 QTTs The number of new open line TTs who become qualified within their first 30 days. ©ACN, Inc. 2011 CompPlanOverview_RP_W_070111 6